Feemster Corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets and performance reports. During October, the company budgeted for 5,900 units, but its actual level of activity was 5,850 units. The company has provided the following data concerning the formulas used in its budgeting and its actual results for October: Data used in budgeting: Revenue Direct labor Direct materials Manufacturing overhead Selling and administrative expenses Total expenses Actual results for October: Revenue Direct labor Direct materials Fixed element per month $ 176,095 $ 31,510 $ 49,800 $ 45,775 $ 31,670 Manufacturing overhead Selling and administrative expenses The activity variance for direct labor in October would be closest to: $0 $0 0 37,000 27,200 $ 64,200 Variable element per unit $29.90 $ 5.60 8.60 1.30 0.80 $ 16.30

Feemster Corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets and performance reports. During October, the company budgeted for 5,900 units, but its actual level of activity was 5,850 units. The company has provided the following data concerning the formulas used in its budgeting and its actual results for October: Data used in budgeting: Revenue Direct labor Direct materials Manufacturing overhead Selling and administrative expenses Total expenses Actual results for October: Revenue Direct labor Direct materials Fixed element per month $ 176,095 $ 31,510 $ 49,800 $ 45,775 $ 31,670 Manufacturing overhead Selling and administrative expenses The activity variance for direct labor in October would be closest to: $0 $0 0 37,000 27,200 $ 64,200 Variable element per unit $29.90 $ 5.60 8.60 1.30 0.80 $ 16.30

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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